Services Rendered Laws Defined
Services rendered laws come into play when a person or company has provided goods or services to another, but the other person refuses to pay for them. This can be anything from a mechanic shop refusing to pay for repairs to a car, to a convenience store failing to reimburse a pizza shop for delivering a pizza. If the services can be established, legal action can be taken. However, this can often be more costly than the amount of money the claim is worth. Many people have resorted to small claims court.
Because of the nature of the contracts , verbal or written, these non payment for services rendered claims are often much less expensive to handle than a typical small claims case. In most cases, both the plaintiff and the defendant never go to court. Instead, the plaintiff submits the necessary documents to the court, which usually consist of the notification agreement and evidence of the transaction itself, such as a receipt. These forms are then sent back with a judgement without either party appearing before a judge or magistrate.
Situations That Commonly Lead to Non Payment
Understanding "Non Payment for Services Rendered Laws" well enough to win
There are numerous reasons why clients or businesses may refuse to pay for services rendered. It may be a dispute over the terms of the contract. Perhaps you did not meet what they thought was an expectation that you would do X in return for your compensation. While some may be solved simply by talking or reaching a compromise, other issues are more complex and may require legal action to have the payment you are due. Many people believe that they do not need to pay for services if they are dissatisfied with the results. This is not true! In many instances, simply because you might not have received the outcome you were hoping for, or the work that was performed might have been subjectively "not good enough" for you, it is not in any way a legal recourse to refuse payment or to only pay part of the contracted amount. Instead, you are in breach of the contract for which you are paid in full, and you will be responsible for paying for any remaining legal fees necessary to collect on the work you performed. Sometimes, the issue is that you did not perform exactly what they had anticipated you would do. In this instance, they may believe that they do not owe you money because you failed to oblige. They owe the money, however, and must pay all amounts they agree to for a service provided, regardless of whether or not they like the outcome. Clients or businesses may simply be experiencing financial trouble. While we understand that sometimes everyone has issues with finances, and that it may be difficult to pay your bill, lack of payment is still something that we take very seriously. However, we will work with someone who is preventing payment because of a temporary financial struggle, and help them figure out a way they can pay their bill.
The Legal Process for Services Not Paid For
Legal recourse for services rendered
Unfortunately, services rendered without payment happen all the time. By law, however, you do have a right to payment for the services you provide. Further, a client or customer’s non payment of services rendered to them does not give them an entitlement to keep your services and property.
An unpaid debt can be handled in one of four ways. If the money owed to you is under $5000, you may take your case to small claims court. Any good lawyer will advise you that you are better off paying a small fee and getting an attorney to represent you.
If your contract for services lists the amount of the contract, you can file a claim in small claims court. If there is a dispute over the amount to be paid or a claim that the contract was breached by the other party, the matter should be taken to the Supreme Court of the state the transaction took place.
In certain cases, you may also put a lien on a person’s real or personal property. The filing of a lien is a formal notice to the property owner that there is a claim against the property until the lien is paid. A lien on real property takes effect only when it is filed with the recorder or registrar of the county where the property is located.
The lien must contain the name of the claimant, the name of the debtor, the amount due, the description of the property and language that the lien attaches to the property. Failure to provide this information can stop the completion of the transaction.
A lien will be removed if the debtor makes arrangements to pay the debt or files a motion with the court to have the lien invalidated. If your lien is filed in the wrong county or cannot be properly described, it may be removed by the clerk of the court.
The filing of a bond with the court will allow a creditor to recover payment of any loss suffered if a lien is filed improperly. An arbitration contract gives you options outside of traditional litigation.
Many contracts have standard arbitration clauses. Arbitration is generally less expensive than litigation. As with many agreements, the parties waive their right to bring forth their claims in court. Often, arbitration is a mandatory pre-trial step. Regardless, it is critical that you know your rights and obligations regarding these arbitration clauses.
Effective Service Agreements
A well-drafted service agreement can play a crucial role in avoiding service non payment problems. When a service payment dispute arises, the court’s review of the claims will often revolve around the terms of the service agreement. Therefore, service providers should spend the time necessary to draft an effective agreement that clearly delineates the services to be performed and any other essential terms. As a general rule, the basic elements required for a contract to be enforceable are: (1) an offer; (2) acceptance and (3) consideration. In the context of a service agreement, the offer would be the proposal for services; acceptance would be the client’s agreement to pay the stated price for services; and consideration would be the exchange of money for services provided. However, certain other elements might be necessary to ensure that the agreement is enforceable. For example , contracts that cannot be performed within a year, contracts involving the sale of goods over a specified amount and contracts that attempt to modify an existing statute of frauds must be in writing.
Performance requirements are another important aspect of service agreements. These provisions should spell out the specific nature of the services to be performed and provide a detailed description of the manner in which the services will be performed. The client should also be required to approve any changes to the agreement after reviewing such changes. Additionally, considerations relating to liability or limitations of liability should also be included in a service contract. Drafting an effective service agreement is essential for both protecting your business and ensuring you actually get paid for the services performed.
What to Do When You Don’t Get Paid
When payment for services rendered is withheld, your initial reaction may be to contact an attorney to explore payment options. The first thing to keep in mind is that communication is extremely important. By this I mean you should explore when you render the services and/or goods, and if any invoices were promptly sent. If the invoice has not been paid, and it is a substantial amount, you need to reach out immediately before the issue becomes complicated, or it appears as if you are only sitting idly.
You want to make sure you are calling the accounts payable department if applicable. You want to make sure an e-mail is sent with a copy of the invoice and correspondence explaining the services. Timing of this is critical and you always want to make sure you are documenting when you rendered the services and the amount you are owed. If this is not done promptly or timely, this could hurt you in an action as well. You do not want to call and scream or yell with someone as this will just give them more grounds to avoid paying you.
Even if you feel angry, you do not want to give the business or individual any greater reasons to avoid payment than they might already have. The reason for this is you want to make credible, and in my opinion, a lawful argument and hatred or anger over the situation will not make you very credible. This is not to say you should not be angry or heated about the situation, but just recognize how you come across in the situation as well.
Frequently Asked Questions – Non Payment Statutes
FAQ’s on Non Payment Laws
Q: How long do I have to sue on a debt?
A: In Florida, the most common non payment situation involves a contract for sale of goods or services. The statute of limitations on that agreement is four years from the date of default.
Q: If there is a guarantee or personal liability for the debt, how long am I given to sue?
A: That answer depends on what city in Florida you are located in. The statute of limitations applied to the guarantee or personal liability can be anywhere from 4 to 20 years from the date of default. Obviously the longer statute of limitations, the better for a creditor because they have more time to file suit before the time period is up. However , as our attorneys get older, hopefully our clients will take care to file within that time frame so any lawsuit occurs while all the witnesses and evidence is still fresh in their minds.
Q: How much does it cost to sue on debts for services rendered or goods sold and delivered?
A: There is no one answer for this question. Once an attorney is retained, the costs to pursue each individual matter are explained. Filing and process service fees, along with costs of any discovery processes will vary from case to case depending on the responsiveness of the opposing party. Obviously the more responsive the party is, the more reasonable the expenses are.
